Disney’s Next Act: Sequels, Spinoffs, Stock Gains

Barron’s: Shares of Disney trade at a premium price, and its latest big-budget film, “Tomorrowland,” already looks like yesterday’s news, thanks to lean box-office receipts over Memorial Day weekend. A write-down looks possible. But it’s a good time to buy Disney’s stock just the same. Shares could rise another 50% over the next three years, to $165, just in time for CEO Bob Iger’s retirement, slated for 2018. One reason is that Disney’s success stems, not from an immunity to occasional flops, but from an unmatched ability to wring profits from winners.